Mercury General Corp. said Monday its second quarter earnings jumped 62 percent, aided by investment gains and lower claims.

The Los Angeles insurer of automobile, homeowners and commercial property reported net income of more than $114 million ($2.07 a share) compared with $70.7 million ($1.29) a year ago.

Excluding investment gains, earnings were flat at 86 cents compared to a year ago. Analysts surveyed by Thomson Reuters on average had expected 71 cents.

Mercury General, which cut jobs and other costs in response to the recession, said its net premiums written fell 6.8 percent to $637 million. Operating income, excluding a one-time gain, was flat at $47.3 million. Investment income nearly tripled to $67.1 million.

The company’s combined ratio the percentage of premiums spent on claims and expenses fell from 97 percent to 96.1 percent. The company’s has a goal to lower that to 95 percent.

The board of directors declared a quarterly dividend of 58 cents per share, to be paid on Sept. 30 to shareholders of record as of Sept. 16.

Shares were up $1.13, or 3 percent, to $36.20 in midday trading on the New York Stock Exchange.